1606 Corp. amends Q3 2023 10-Q to add CEO salary accrual

TL;DR

<b>1606 Corp. amends Q3 2023 10-Q to disclose CEO salary accrual and add required certifications.</b>

AI Summary

1606 CORP. (CBDW) filed a Amended Quarterly Report (10-Q/A) with the SEC on May 15, 2024. 1606 Corp. filed an amendment (10-Q/A) to its Q3 2023 Form 10-Q. The amendment specifically adds accrued and unpaid salary for CEO Gregory Lambrecht. The original Form 10-Q was filed on November 15, 2023. This filing includes new certifications required by Rule 13a-14 of the Securities Exchange Act of 1934. The company's fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking 1606 CORP., this filing contains several important signals. This amendment clarifies previously unreported compensation for the CEO, ensuring greater transparency in financial disclosures. The inclusion of new certifications indicates a commitment to regulatory compliance and updated reporting standards.

Risk Assessment

Risk Level: low — 1606 CORP. shows low risk based on this filing. The risk is low as this is a routine amendment to a prior filing, primarily for disclosure and certification updates, rather than a restatement due to material errors.

Analyst Insight

Review the amended financial statements and management discussion to understand the specific details of the CEO's accrued salary and the impact of the new certifications.

Financial Highlights

debt To Equity

0.0001

revenue

47258606

operating Margin

60000000

net Income

56632599

eps

0.0001

gross Margin

0

cash Position

40000000

revenue Growth

P9M

Key Numbers

• 2023-09-30 — Quarter End Date (Period for the amended 10-Q)
• 2024-05-15 — Filing Date (Date of the 10-Q/A filing)
• 0001477932-24-002966 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• 1606 CORP. (company) — Filer name
• Gregory Lambrecht (person) — CEO of 1606 Corp.
• 2023-09-30 (date) — Fiscal quarter end date
• 2024-05-15 (date) — Filing date
• November 15, 2023 (date) — Original filing date
• Rule 13a-14 (regulatory) — Rule requiring new certifications

FAQ

Industry Context

1606 Corp. operates in the software services industry, as indicated by its SIC code 7372.

Regulatory Implications

The filing references Rule 13a-14 under the Securities Exchange Act of 1934, which pertains to the certification of disclosure in periodic reports.

What Investors Should Do

1. Review the amended financial statements for details on the CEO's accrued salary.
2. Examine the management's discussion and analysis for any updated operational or financial commentary.
3. Confirm the inclusion and adequacy of the new certifications required by Rule 13a-14.

Key Dates

• 2023-09-30: Quarter End — Period covered by the amended 10-Q
• 2024-05-15: Filing Date — Date of the 10-Q/A filing
• 2023-11-15: Original 10-Q Filing — Date the initial Q3 2023 10-Q was filed

Year-Over-Year Comparison

This is an amendment to the original Q3 2023 10-Q, specifically adding accrued CEO salary and new certifications, while other aspects of the original filing remain unchanged.

Filing Documents

• onesix_10qa.htm (10-Q/A) — 525KB
• onesix_ex311.htm (EX-31.1) — 13KB
• onesix_ex312.htm (EX-31.2) — 13KB
• onesix_ex321.htm (EX-32.1) — 6KB
• 0001477932-24-002966.txt (&nbsp;) — 2791KB
• onesix-20230930.xsd (EX-101.SCH) — 22KB
• onesix-20230930_lab.xml (EX-101.LAB) — 167KB
• onesix-20230930_cal.xml (EX-101.CAL) — 31KB
• onesix-20230930_pre.xml (EX-101.PRE) — 139KB
• onesix-20230930_def.xml (EX-101.DEF) — 87KB
• onesix_10qa_htm.xml (XML) — 364KB

-FINANCIAL INFORMATION

PART I-FINANCIAL INFORMATION 4

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. 4

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 14

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. 17

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES. 17

-OTHER INFORMATION

PART II-OTHER INFORMATION 19

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. 19

EXHIBITS

ITEM 6. EXHIBITS. 20

SIGNATURES

SIGNATURES 21 3 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. 1606 CORP. CONDENSED BALANCE SHEETS September 30, December 31, Assets 2023 2022 Current Assets (Unaudited) (as restated) Cash $ 34,316 $ 105,065 Accounts receivable 3,600 - Notes receivable 21,500 - Inventory 129,202 113,174 Prepaids and other current assets 9,929 13,577 Total Current Assets 198,547 231,816 Total Assets $ 198,547 $ 231,816 Liabilities and Stockholders' Deficit Current Liabilities Accounts payable and accrued liabilities $ 66,707 $ 25,188 Accrued expenses – related party 187,500 0 Accrued interest 8,260 3,173 Note payable to shareholder 755,050 735,050 Note payable to related party 63,456 63,456 Convertible notes, net of discount 31,482 - Derivative liability 443,324 - Total Current Liabilities 1,555,779 826,867 Total Liabilities 1,555,779 826,867 Stockholders' Deficit Undesignated preferred stock, par value $ 0.0001 ; 40,000,000 authorized; no shares issued and outstanding - - Class A convertible preferred stock, par value $ 0.0001 per share, 60,000,000 shares authorized; 56,632,599 and 56,635,000 shares issued and outstanding, respectively 5,663 5,664 Common stock, par value $ 0.0001 per share, 5,000,000,000 shares authorized, 47,258,606 and 37,428,394 shares issued and outstanding, , respectively 4,726 3,742 Additional paid-in capital 866,360 236,842 Accumulated deficit ( 2,233,981 ) ( 841,298 ) Total Stockholders' Deficit ( 1,357,232 ) ( 595,051 ) Total Liabilities and Stockholders' Equity $ 198,547 $ 231,816 The accompanying notes are an integral part of these unaudited condensed financial statements. 4 Table of Contents 1606 CORP. CONDENSED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 (as restated) (a

Business

Business 1606 Corp. is an early-stage sales marketing company focused on the domestic hemp cigarette (aka "pre-roll") market. The Company currently sells its hemp products through individual online sales. Going Concern The accompanying condensed financial statements have been prepared assuming the Company will continue as a going concern. As of September 30, 2023, the Company has yet to achieve significant profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. The condensed financial statements do not include any adjustments that might result from the outcome of these uncertainties. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue in existence is dependent on its ability to develop its business and to achieve profitable operations. Since the Company does not anticipate achieving profitable operations and/or adequate cash flows in the near term, management will continue to pursue additional equity financing through private placements of the Company's common stock. Note 2 - Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company's financial position as of September 30, 2023 and December 31, 2022, and the results of the Company's operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the financial statements and the notes included in our latest annual report on Form 10-K for the year ended December 31, 2022, and our other reports on file with the Securities and Exchange Commission ("SEC"). Management believes the as

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